Al Futtaim: No Futher Compensations
Dr. Hani Sarie Eldin, the legal counsel for Al Futtaim Real Estate, said the company rejects paying any further compensations so as to carry out the contract terms with New Urban Communities Authority (NUCA). Sarie Eldin emphasized on the company’s integrity and its adherence to its legal rights as Al Futtaim has paid to the Housing Ministry EGP 673 million for the Cairo Festival City Project’s land and has injected about EGP 4 billion since 2011.
Al Futtaim Real Estate owns Cairo Festival City project, which is established on an area of 629 acres.
“Al Futtaim Group will defend its legal stance before the General Prosecution as it did not commit any violations and it has been implementing since January 2011 the Cairo Cairo Festival City project through injecting EGP 130 million a month.” Sarie Eldin added
“The company’s total injections up till now amount to EGP 4 billion, but it is encountering some difficulties in issuing new licenses.”
The crisis has been provoked because the former minister of housing, Ahmed El-Maghraby should have canceled the 629-acre land contract of Al-Futtaim in the New Cairo City after the Company delayed in establishing the project.
However, El-Maghraby approved granting the Company a 10-year grace period for the establishment to be ended in 2014 after the Company paid EGP 300 million. Afterwards, experts from Ministry of Justice said El-Maghraby should have terminated the contract as the value of the land worth EGP 4 billion, meaning that this settlement agreement squandered public money.
Sarie Eldin said there are negotiations with Ministry of Housing over a new settlement agreement which suggests paying EGP 400 million to the Ministry for extending the grace period to 2020, instead of 2014. However, Ministry of Housing demanded that the grace period shall not extend after 2018. Public Prosecution has not resolved this dispute yet.
The crisis has been provoked because the former minister of housing, Ahmed El-Maghraby should have in 2004 canceled the 629-acre land contract of Al-Futtaim in the New Cairo City after the company’s delay in carrying out the project.
However, El-Maghraby approved granting the Company a 10-year grace period for the establishment to be ended in 2014 after the Company paid EGP 300 million. Afterwards, experts from Ministry of Justice said El-Maghraby should have terminated the contract as the value of the land worth EGP 4 billion, meaning that this settlement agreement squandered public money.
Sarie Eldin said there are negotiations with Ministry of Housing over a new settlement agreement which suggests paying EGP 400 million to the Ministry for extending the grace period to 2020, instead of 2014. However, Ministry of Housing demanded that the grace period shall not extend after 2018. Public Prosecution has not resolved this dispute yet.
